The relationship between spot and futures prices: An empirical analysis

Andrew Gulley and John Tilton ()

Resources Policy, 2014, vol. 41, issue C, 109-112

Abstract: In their recent article, Tilton et al. (2011, Resour. Policy, 36, 187–195) contend on the basis of conceptual and theoretical arguments that spot and futures prices for metals and other commodities should be closely correlated during periods of strong contango and much less correlated during periods of backwardation or weak contango. If true, this hypothesis implies that speculation and investor demand, most of which takes place on futures markets, should affect spot prices much less or not at all during periods of backwardation or weak contango.

Keywords: Commodity prices; Investor demand and stocks; Speculation; Strong and weak contango; Spot and futures markets; Copper (search for similar items in EconPapers)
JEL-codes: G12 L7 Q00 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:41:y:2014:i:c:p:109-112

DOI: 10.1016/j.resourpol.2014.03.005

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